Puttur, August 2, 2025: As August 2025 unfolds, the focus in India sharpens on the Income Tax Act's critical deadlines, affecting both taxpayers and businesses alike. This pivotal month brings forth a series of tax-related responsibilities, including the deposit of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS), the issuance of essential certificates, and the submission of compliance statements. The stakes are high, as missing these targets could lead to penalties, interest charges, and even the disallowance of expenses. Stay ahead of the game with our detailed outline of key tax deadlines, designed to keep your financial affairs in order and your compliance status unblemished.
Key Tax Deadlines for August 2025
7 August 2025: TDS/TCS Deposit Update
The govt has set a critical deadline for the deposit of tax deducted at source (TDS) and tax collected at source (TCS) for the month of July 2025. All government offices are mandated to make these deposits without the use of a challan on the very same day to maintain adherence to Income Tax rules.
Form 27C Declarations Deadline Approaches:
A reminder has been issued concerning the due date for uploading declarations obtained from buyers in Form 27C, which is specifically linked to the non-deduction of TCS for the same month of July 2025. This requirement is a pivotal aspect of maintaining tax compliance.
14 August 2025:
The deadline for issuing TDS certificates for tax deducted at source during the month of June 2025 has been announced. This applies to transactions under several key sections of the Income Tax Act:
1) Under Section 194-IA, certificates are mandatory for TDS on property transactions.
2) For rent payments made by individuals or HUFs not under audit, certificates must be issued as per Section 194-IB.
3) Non-business individuals are reminded to obtain TDS certificates for payments made to contractors or professionals, in accordance with Section 194M.
4) Additionally, specified persons are required to secure TDS certificates for transfers involving crypto or virtual digital assets, as outlined in Section 194S.
This notification serves as a reminder to ensure compliance with the relevant tax regulations and maintain proper records for the respective financial year.
15 August 2025:
A mandatory update requires govt offices to submit Form 24G, detailing TDS/TCS payments made in July 2025, without the need for a challan. In related tax news, stock exchanges are instructed to provide statements outlining client code adjustments for transactions conducted in July 2025 by filling out Form 3BB.
Additionally, the issuance of quarterly TDS certificates (Form 16A) for non-salary payments made during the first quarter of the fiscal year 2025-26 (April to June 2025) is underway. Recognized associations are also reminded of their obligation to submit reports on client code modifications for July 2025 to maintain compliance with the latest tax regulations.
30 August 2025:
The tax deadline approaches! If you deducted TDS last July, remember to file your challan-cum-statements for the following categories under their respective sections:
1) For the real estate tycoons, ensure your challan-cum-statements are in order for property transactions under the watchful eye of Section 194-IA.
2) Rent aficionados and HUFs, don't forget to get those rent payments in line with the regulations of Section 194-IB.
3) Professional mavericks receiving payments from non-business entities, take heed of the guidelines set by Section 194M for contract or professional dealings.
4) Lastly, those diving into the digital currency pool, make certain your crypto or virtual digital asset transactions are squeaky clean with the scrutiny of Section 194S for specified persons.
31 August 2025
Important Filing Reminder: Charitable and religious organizations are advised to submit Form 9A to apply for deferred income under Section 11(1) of the Income Tax Act, with a deadline of 31 October 2025 for their ITR (Income Tax Return) submission.
Additionally, for assesses looking to declare income accumulation under Sections 10(21) or 11(1), Form 10 is to be completed with the same deadline. Stay compliant with the latest tax regulations to avoid penalties and ensure timely processing of your tax returns.
Consequences of Non-Compliance with TDS Deadlines:
The Income Tax Act imposes substantial penalties for failing to meet TDS (Tax Deducted at Source) deadlines. These include:
1) Late TDS Deposit: An interest rate of 1.5% per month under Section 201(1A) applies from the date of deduction to the date of actual deposit.
2) Delayed TDS Return Filing: This incurs a daily penalty of ₹200 under Section 234E, capped at the TDS amount, along with potential additional penalties under Section 271H for incorrect or belated submissions, which can range from ₹10,000 to ₹1 lakh.
3) Expense Disallowance: Under Section 40(a)(ia), up to 30% of expenses may be disallowed if TDS is not properly deducted or deposited, with stricter rules for non-resident cases leading to a possible 100% disallowance.
To mitigate these penalties, taxpayers are advised to reconcile their accounts, verify TDS discrepancies using Form 26AS, and consult tax experts for complex scenarios. Proactive measures ensure adherence to regulations and reduce financial burdens.
Tips for TDS Compliance:
1) Utilize e-Filing Platform: Access the Income Tax Department's e-Filing portal (incometaxindiaefiling.gov.in) with your TAN to manage TDS/TCS deposits and return submissions.
2) Create a Tax Calendar: Keep track of monthly and quarterly tax obligations to avoid missing deadlines.
3) Embrace Technology: Employ tax software such as ClearTax or Refrens to streamline TDS return filing and certificate issuance processes.
4) Seek Professional Guidance: For intricate forms like 9A and 10 or substantial TDS deductions, it is recommended to consult chartered accountants for precision.
August 2025 is pivotal for tax compliance, as the CBDT has extended the ITR (Income Tax Return) filing deadline for non-audit cases to 15 September 2025 (as per Circular No. 06/2025). By preparing in advance and strictly adhering to these timelines, individuals can evade fines and maintain fiscal discipline. Stay updated, remain compliant, and enlist professional help to effortlessly navigate the intricacies of India's tax system.
Keywords: August 2025 tax deadlines, TDS filing, TCS deposit, Form 27C, Form 9A, Form 10, Income Tax Act, tax compliance, TDS certificates, Form 24G, Form 3BB, Section 194-IA, Section 194-IB, Section 194M, Section 194S, India tax calendar, penalties for late TDS, tax e-filing, Form 16A, charitable institutions, income accumulation, CBDT circular